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Strategies & Market Trends : Free Cash Flow as Value Criterion

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To: Andrew who wrote (105)11/3/1997 3:12:00 PM
From: Pirah Naman   of 253
 
Andrew:

My one comment is that by disregarding the FCFs after some period of time (as you put it, avoiding the optimistic assumption that Intel will be around forever) you are implicitly assuming a residual value of zero, which is incorrect. The alternative is to include the residual value. You can take a pessimistic view of 0% growth, or some other low number, but what this does is to put you back into the situation that
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